Solana’s [SOL] high activity may not be enough for its revival: Here’s why

• Solana witnessed a high number of transactions being made on the network.
• However, DEX volume and active addresses on the network fell.

Solana [SOL] has been in muddy waters for quite some time, having been on the receiving end of criticism due to its frequent downtimes. However, new data revealed that there was a spike in the number of transactions being made on the network.

Read Solana’s [SOL] Price Prediction 2023-2024

Artemis’ data shows that the volume of transactions on the Solana network has hit its highest point in six months. This resulted in a 22.75% increase in its TVL over the past month, according to DeFiLlama’s data.

Source: Artemis

Although the Solana network has seen high levels of activity, there has been a decline in interest in its DEXs, as evidenced by the declining volume of DEX transactions on the network.

The decrease in DEX volume on the Solana network could be linked to the underperformance of DeFi protocols like Saber and Radium. Based on data from Dapp Radar, there was a 22.5% drop in the number of unique active wallets on Saber and a 33.97% decrease in the number of unique active wallets on Radium.

Source: Artemis

SOL on the metric front

On the social front, things were not going too well for Solana either. According to LunarCrush’s data, the number of social mentions and engagements for Solana fell by 64.7% and 47.11%, respectively. Along with that, the weighted sentiment for Solana also fell. This shows that the crypto community had a pessimistic outlook towards the future of Solana at press time.

Source: Santiment

Realistic or not, here’s SOL’s market cap in BTC’s terms

This negative outlook impacted the price of SOL as well, which decreased materially over the last month. Coupled with that, the volume of the SOL token fell from 1.13 billion to 271 million in the same period.

However, one aspect of the Solana ecosystem that could turn things around for the protocol would be its NFT market. According to Santiment’s data, the number of NFT trades rose over the last few days. If the trend continued, it could dampen the negative sentiment against Solana and make users interested in the protocol and its token again.

Source: Santiment